Govt bans ‘product phoenixing’ by health insurers

The government has made it illegal for health insurers to close policies then open similar policies at a much higher price – a practice known as product phoenixing.  

Health insurers are only allowed to raise premiums of existing policies once a year to a government-approved level. However some health insurers have been exploiting a loophole by closing a policy to new customers, then launching a new, similar policy at a higher price.  

As reported by healthslips.com.au in 2024, Minister for Health and Ageing Mark Butler announced he would change the law to make product phoenixing illegal. That legislation was passed on 16 September 2026.  

“It’s an underhanded, largely secret way of health insurers raising their prices outside of the usual approval process,” Butler told the ABC in 2024. 

The new legislation will also see the government’s Medical Cost Finder website upgraded, which provides data on out-of-pocket fees charged by non-GP specialists. The site will now source data from Medicare billing records rather than relying on specialists to share their fees. With up-to-date information on specialist fees, Australians will be able to choose surgeons that meet their budget. 

“We know an increasing number of Australians have not been taking up referrals from their GP to see a specialist due to concern about cost, but this legislation will deliver clarity about costs and more choice in their health care,” said Butler. 

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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